Recently, I was thinking about how many people enter the world of investing without even knowing what they’re doing, right? And that’s where these tools come into play—many people have heard of them, but few truly understand them: stock market simulators and demo accounts.

Look, even though they seem the same, the truth is that they have important differences. Stock market simulators offered by educational platforms like Investopedia or Wall Street Survivor are designed primarily for learning. They’re like a flight simulator but for traders. On the other hand, demo accounts from online brokers show you exactly what trading for real is like, with all the tools, risks, and possibilities you’d have with real money.

What’s interesting is that both serve two purposes: to educate you and to train you. First, you learn how things work; then you practice new strategies or assets you don’t know. And here’s the important part: the best brokers let you switch between a virtual and a real account at any time, so you can practice without risk before putting your real money in.

As for what you can do with these tools, well, almost everything. National and international stocks, indices, forex, cryptocurrencies, ETFs, commodities. The demo accounts from more serious brokers offer virtually the same catalog as your real investments.

Now, if you’re looking for the best free stock market simulators, I’ve seen that some stand out quite a bit. MiTrade, for example, gives you an unlimited demo account with 50,000 virtual dollars and works on both the web and mobile apps. Then there’s MarketWatch with its Virtual Stock Exchange, which is more focused on the educational side. IG is one of the oldest and most respected brokers, with access to MetaTrader. HowTheMarketWorks is basically an online school that trains about half a million students every year. And eToro—well, eToro is interesting if what attracts you is social trading, seeing what other traders do and learning from that.

But we have to be honest: working with virtual money has its pitfalls. First, many times we trade more recklessly because it isn’t real money. That’s what they call fragile euphoria. Second, in demo accounts they give you huge amounts of virtual capital, so when you switch to trading with your real money, you have to be much more selective and cautious. Third, some brokers limit the demo account usage time to 30 days, which forces people to trade with real money before they’re ready.

What I recommend is that you take the demo account seriously as if it were real money. Keep a rigorous track, test your strategies, and maintain a record. Don’t use it like a casino. Also, combine practice with real education. Read, learn, experiment. And here’s something that surprises many people: big fund managers also use simulators before moving real money into the market. It’s not just for beginners.

The reality is that a good stock market simulator is a tool that everyone should take advantage of. It’s free, you risk nothing, and you can improve your skills a lot before investing your own capital. If you find a platform that lets you switch easily between a demo and a real account, even better. That way, you practice exactly with the tools you’ll use afterward. Personally, I believe it’s one of the best steps someone who wants to start investing can take to avoid costly mistakes.